#if( $!Contact.FirstName.Length > 1 )$!Contact.FirstName#elseif ($!Contact.Title != '' && $!Contact.LastName != '') Dear $!Contact.Title $!Contact.LastName #else Hi#end, here is everything you need to know this December!

#if( $!Contact.FirstName.Length > 1 )$!Contact.FirstName#elseif ($!Contact.Title != '' && $!Contact.LastName != '') Dear $!Contact.Title $!Contact.LastName #else Hi#end, here is everything you need to know this December!




Whittlesey Street, London, SE1 | £2,275,000

This delightful Regency home (1823) is located in Whittlesey street, Waterloo. One of Central London’s most desirable and recognisable streets.

Click here to read Whittlesey Street, London, SE1 | £2,275,000.



Ability Place, London, E14 | £900,000

Alongside the outstanding large private terrace, the apartment features floor-to-ceiling windows which illuminate the entire apartment with natural light, whilst also fully complementing...

Click here to read Ability Place, London, E14 | £900,000.



Southbank Tower, 55 Upper Ground, London, SE1 | £2,350,000

The fabulous apartment encompasses a fully fitted impressive kitchen, 1364 sq ft, with an open plan, reception room designed to entertain.

Click here to read Southbank Tower, 55 Upper Ground, London, SE1 | £2,350,000.



Peel Street, London, W8 | £3,395,000

This beautifully presented and substantial 4 bedroom, 3 bathroom house is located perfectly in Kensington...

Click here to read Peel Street, London, W8 | £3,395,000.



3 Pearson Square, London, W1T | £1,500,000

A delightful 1 large double bedroom, 2 bathrooms beautifully furnished apartment on the 4th floor in the luxurious Pearson Square development located in the heart of the West End.

Click here to read 3 Pearson Square, London, W1T | £1,500,000.



55 Upper Ground, London, SE1 | £1,195,000

Attention Investors 4.9% yield for this luxurious 2 bedroom, 1 bathroom apartment is available for sale in Southbank Tower. Heavily discounted - must sell!

Click here to read 55 Upper Ground, London, SE1 | £1,195,000.



Ability Place, London, E14 | £900,000

Alongside the outstanding large private terrace, the apartment features floor-to-ceiling windows which illuminate the entire apartment with natural light.

Click here to read Ability Place, London, E14 | £900,000.



Knightsbridge, London, SW7 | £19,500 PCM

The house has been imaginatively remodelled and interior designed to create a light and spacious contemporary home, it is arranged over 228sqm, with state-of-the-art technology and air conditioning.

Click here to read Knightsbridge, London, SW7 | £19,500 PCM.



264 Finchley Road, London, NW3 | £6,000 PCM

We are delighted to present this fabulous 3 bedroom, 2 bathroom apartment in the new luxurious development Viridium Apartments on the ground-floor/lower ground floor. Furnished and available from 18/10/22.

Click here to read 264 Finchley Road, London, NW3 | £6,000 PCM.



264 Finchley Road, London, NW3 | £6,000 PCM

We are delighted to present this fabulous 3 bedroom, 2 bathroom apartment. This apartment is unfurnished, measures 1257 sq ft and and is available now.

Click here to read 264 Finchley Road, London, NW3 | £6,000 PCM.



264 Finchley Road, London, NW3 | £4,500 PCM

Fabulous furnished 2 bedroom, 2 bathroom penthouse in the new luxurious development Viridium is on the 3rd floor. This apartment also benefits from a lighting system...

Click here to read 264 Finchley Road, London, NW3 | £4,500 PCM.



What does the Autumn statement mean for the housing market

 
 

Stamp duty cuts reversed and rising council tax rates on the way - but the energy price cap remains in place. And what does it all mean for mortgage rates?



Inflation expected to fall sharply next year

The Bank of England predicts inflation will be below its 2% target in two years time, and close to zero in three years, leading to lower mortgage rates.

Minutes from the Bank of England’s latest interest rate setting meeting triggered some alarming headlines.

But while some outlets warned that the UK was heading for its longest recession since records began, there was actually good news buried in the minutes of its meeting - including suggestions that interest rates may not need to rise by as much as previously expected.

We take a look at some of the positives from the report and how they will impact the housing market.

 

The recession will be long but may not be too deep

The most eye-catching prediction from the Bank’s Monetary Policy Committee’s (MPC) minutes was that the UK is likely already in a recession, which is expected to last for two years.

If this prediction is correct, it would be the longest recession for the country since records began in 1920.

But what received less attention is the fact that economic growth is expected to contract by 1.9% in 2023 and 0.1% in 2024.

This means that while the MPC is expecting the recession to be long, it does not think it will be too deep.

To put these figures in context, the current recession would be significantly less bad than the one in the wake of the global financial crisis, when GDP growth contracted by 2.6% in a single quarter, and by 7.1% across five quarters in 2008 and 2009.

During the Covid-19 pandemic, GDP dived by a record 19.4%.

Economists have also pointed out that the MPC’s forecast is based on current market predictions for interest rates.

But the MPC suggested interest rates will not need to rise by as much as markets think, suggesting the recession could be less severe than its forecast suggests.

 

Unemployment will remain reasonably low

The MPC also forecast a rise in unemployment in its minutes, predicting the proportion of people who are out of work would increase from 3.5% now to 4.9% by the end of 2023.

While the increase may sound alarming, it is important to see it in context.

Unemployment is currently at its lowest level since 1974. A rise to 4.9%, would put the number of people out of work broadly on the same level as in early 2021 during the pandemic.

Looking further ahead, the MPC expects unemployment to continue rising in 2024 and 2025 to reach 6.4% by the end of that year. That's still well below the peak of 10.7% seen in the 1992 recession.

The fact that the number of people likely to lose their job is expected to remain relatively low compared with previous recessions, is good news for the housing market.

In the past, steep rises in unemployment led to a high level of forced sales, as people were no longer able to keep up with their mortgage repayments, triggering house price falls.

But that looks unlikely to happen this time around. Not only are job losses expected to be limited, but lenders are also now required by regulators to work with people who run into difficulties repaying their mortgage, and only repossess their home as a last resort.

 

Inflation should peak soon, then fall sharply

A major factor contributing to the current slowdown in activity in the housing market is the cost-of-living squeeze.

Steep increases in the cost of food, petrol and energy have made consumers more cautious, and caused them to delay making big purchases, such as a buying a new home.

It also makes it harder for them to pass mortgage affordability tests, as more of their money is being spent on essentials.

But the MPC expects inflation to peak at 11% in the final three months of this year, before falling sharply from the middle of next year. 

In fact, it predicts inflation will be below its 2% target two years from now, and be close to zero in three years’ time.

Getting inflation back under control will not only boost consumer confidence, but it will also enable the MPC to reduce the Bank Rate – the official cost of borrowing – which should lead to lower mortgage rates.

 

Interest rates may not rise by as much as expected

This one is a bit more speculative, as the MPC does not make predictions on interest rates.

But it did appear to signal that the Bank Rate may not need to increase by as much as markets currently expect.

When the MPC held its November meeting, money markets had priced in further increases to the Bank Rate to 5.25%.

As is customary, the MPC based its economic forecasts on interest rates peaking at this level.

Although it continued with its previous rhetoric that it will “respond forcefully, as necessary” to get inflation back down to its 2% target, it also said the impact of previous interest rate rises had not yet been fully felt.

In a press conference following the meeting, Bank Governor Andrew Bailey also said the Bank Rate would have to go up by less than currently expected by financial markets.

He said: “Our best view of where the rate should be … is nearer the constant rate curve [3.00%] than the market rate curve [5.25%].”

Economists have interpreted his comments as suggesting the Bank Rate could peak at between 3% to 4%, meaning it may not rise much further from its current level of 3%. 

This is obviously good news for mortgage rates.

Variable rate mortgages, such as tracker products and standard variable rates, move up and down in line with changes to the Bank Rate.

Fixed rate mortgages are based on so-called swap rates, which are themselves based on what the money markets think will happen with interest rates in the future.

In both cases, if interest rates do not need to rise by as much as previously expected, mortgage rates will also be lower.

 

What does this mean for the housing market?

Activity in the housing market has been hit by a combination of the cost-of-living squeeze, economic uncertainty, and the recent increase in mortgage rates.

If inflation peaks soon and mortgage rates do not rise any higher, it could help to restore consumer confidence.

In fact, the cost of fixed rate mortgages, which has already come down since the mini-Budget, is expected to continue to fall during the final part of the year.

At the same time, a sharp spike in unemployment in 2023 is not expected, meaning there are unlikely to be a high level of forced sales.

Even so, mortgage rates still remain significantly higher than they were at the start of the year, which, combined with higher house prices, will impact affordability.

This is likely to lead to lower buyer demand, and house prices are likely to drop from their current record level in some areas.



Inflation expected to fall sharply next year

 

The Bank of England predicts inflation will be below its 2% target in two years time, and close to zero in three years, leading to lower mortgage rates.

Minutes from the Bank of England’s latest interest rate setting meeting triggered some alarming headlines.

But while some outlets warned that the UK was heading for its longest recession since records began, there was actually good news buried in the minutes of its meeting - including suggestions that interest rates may not need to rise by as much as previously expected.

We take a look at some of the positives from the report and how they will impact the housing market.

 

The recession will be long but may not be too deep

The most eye-catching prediction from the Bank’s Monetary Policy Committee’s (MPC) minutes was that the UK is likely already in a recession, which is expected to last for two years.

If this prediction is correct, it would be the longest recession for the country since records began in 1920.

But what received less attention is the fact that economic growth is expected to contract by 1.9% in 2023 and 0.1% in 2024.

This means that while the MPC is expecting the recession to be long, it does not think it will be too deep.

To put these figures in context, the current recession would be significantly less bad than the one in the wake of the global financial crisis, when GDP growth contracted by 2.6% in a single quarter, and by 7.1% across five quarters in 2008 and 2009.

During the Covid-19 pandemic, GDP dived by a record 19.4%.

Economists have also pointed out that the MPC’s forecast is based on current market predictions for interest rates.

But the MPC suggested interest rates will not need to rise by as much as markets think, suggesting the recession could be less severe than its forecast suggests.

 

Unemployment will remain reasonably low

The MPC also forecast a rise in unemployment in its minutes, predicting the proportion of people who are out of work would increase from 3.5% now to 4.9% by the end of 2023.

While the increase may sound alarming, it is important to see it in context.

Unemployment is currently at its lowest level since 1974. A rise to 4.9%, would put the number of people out of work broadly on the same level as in early 2021 during the pandemic.

Looking further ahead, the MPC expects unemployment to continue rising in 2024 and 2025 to reach 6.4% by the end of that year. That's still well below the peak of 10.7% seen in the 1992 recession.

The fact that the number of people likely to lose their job is expected to remain relatively low compared with previous recessions, is good news for the housing market.

In the past, steep rises in unemployment led to a high level of forced sales, as people were no longer able to keep up with their mortgage repayments, triggering house price falls.

But that looks unlikely to happen this time around. Not only are job losses expected to be limited, but lenders are also now required by regulators to work with people who run into difficulties repaying their mortgage, and only repossess their home as a last resort.

 

Inflation should peak soon, then fall sharply

A major factor contributing to the current slowdown in activity in the housing market is the cost-of-living squeeze.

Steep increases in the cost of food, petrol and energy have made consumers more cautious, and caused them to delay making big purchases, such as a buying a new home.

It also makes it harder for them to pass mortgage affordability tests, as more of their money is being spent on essentials.

But the MPC expects inflation to peak at 11% in the final three months of this year, before falling sharply from the middle of next year. 

In fact, it predicts inflation will be below its 2% target two years from now, and be close to zero in three years’ time.

Getting inflation back under control will not only boost consumer confidence, but it will also enable the MPC to reduce the Bank Rate – the official cost of borrowing – which should lead to lower mortgage rates.

 

Interest rates may not rise by as much as expected

This one is a bit more speculative, as the MPC does not make predictions on interest rates.

But it did appear to signal that the Bank Rate may not need to increase by as much as markets currently expect.

When the MPC held its November meeting, money markets had priced in further increases to the Bank Rate to 5.25%.

As is customary, the MPC based its economic forecasts on interest rates peaking at this level.

Although it continued with its previous rhetoric that it will “respond forcefully, as necessary” to get inflation back down to its 2% target, it also said the impact of previous interest rate rises had not yet been fully felt.

In a press conference following the meeting, Bank Governor Andrew Bailey also said the Bank Rate would have to go up by less than currently expected by financial markets.

He said: “Our best view of where the rate should be … is nearer the constant rate curve [3.00%] than the market rate curve [5.25%].”

Economists have interpreted his comments as suggesting the Bank Rate could peak at between 3% to 4%, meaning it may not rise much further from its current level of 3%. 

This is obviously good news for mortgage rates.

Variable rate mortgages, such as tracker products and standard variable rates, move up and down in line with changes to the Bank Rate.

Fixed rate mortgages are based on so-called swap rates, which are themselves based on what the money markets think will happen with interest rates in the future.

In both cases, if interest rates do not need to rise by as much as previously expected, mortgage rates will also be lower.

 

What does this mean for the housing market?

Activity in the housing market has been hit by a combination of the cost-of-living squeeze, economic uncertainty, and the recent increase in mortgage rates.

If inflation peaks soon and mortgage rates do not rise any higher, it could help to restore consumer confidence.

In fact, the cost of fixed rate mortgages, which has already come down since the mini-Budget, is expected to continue to fall during the final part of the year.

At the same time, a sharp spike in unemployment in 2023 is not expected, meaning there are unlikely to be a high level of forced sales.

Even so, mortgage rates still remain significantly higher than they were at the start of the year, which, combined with higher house prices, will impact affordability.

This is likely to lead to lower buyer demand, and house prices are likely to drop from their current record level in some areas.

 

Contact our Property for more advice experts today!  

 

 

*Zoopla



Bank Rate rises to 3% to reach highest level since 2008

 

The UK Bank Rate has risen to 3% from 2.25% in the biggest single increase for 33 years. Here's what it means for you and your home.

The Bank of England has increased interest rates by 0.75% - the biggest single increase since 1989, apart from the almost immediately reversed rise on Black Wednesday in 1992.

The Bank Rate is now at 3%, its highest level since 2008.

It was the eighth meeting in a row at which the Monetary Policy Committee (MPC) has increased the official cost of borrowing, as it continues to battle high inflation.

The move adds around £86 a month to repayments for someone with a £200,000 variable rate mortgage.

The increase will impact the estimated 850,000 people who have a tracker mortgage, and the 1.1 million who are on their lender’s standard variable rate, both of which move up and down in line with the Bank Rate.

Homeowners with variable rate mortgages have now seen their mortgage payments rise by more than £300 a month since December, at a time when they are also grappling with steep increases to the cost of living.

 

"Money markets were expecting a hefty jump in the Bank Rate"

Richard Donnell, Director of Research and Insight at Zoopla, said: "Money markets were expecting a hefty jump in the Bank Rate today. Most borrowers used fixed rate loans so it's the cost of 2 and 5 year fixed rate money for banks that underpins mortgage rates more than the base rate.

"Today's jump does not worsen the outlook for mortgage borrowers but home buyers need to realise that 4% to 5% mortgages are set to be the norm in future, not the 1% to 2% of recent years."

 

Why has the bank rate been increased?

The MPC has increased the Bank Rate by 2.9% since it first started to raise the official cost of borrowing in December last year, in a bid to bring inflation down.

Despite these increases, inflation – which measures the rate at which the cost of goods and services is rising – has remained stubbornly high at 10.1%.

The MPC’s job has been made significantly harder by former Chancellor Kwasi Kwarteng’s mini budget.

The markets were spooked by his plans to cut taxes and increase spending, leading to a steep drop in the value of the pound. This in turn made imports more expensive, and was expected to push inflation higher.

It also impacted the housing market, with the number of people looking to buy a home dropping by a third in the wake of the mini budget.

In the minutes on its latest meeting, the MPC warned that “further increases in Bank Rate may be required” in order to get inflation back down to its 2% target.

But there was some good news for homeowners, with the MPC adding that interest rates were likely to peak at a lower level than was being predicted by the financial markets.

Economists had previously expected interest rates to have to increase to around 5% by the middle of next year, but they have since trimmed their forecasts to 4.25%.

 

What should I do about my mortgage?

If you are on a fixed rate mortgage

If you are on a fixed rate mortgage you don’t need to do anything right away. The interest rate you are paying will stay the same until the end of your product term, usually two or five years.

If you are coming to the end of your deal, you should start thinking about your next one.

Most lenders will allow you to ‘book’ a new rate between three and six months before your current one ends.

But you need to be prepared for a significant increase in your monthly repayments, as interest rates are now likely to be much higher than they were when you took out your mortgage or last remortgaged.

Mortgage rates could fall slightly towards the end of this year and early next year as markets stabilise, so you may want to wait to see if this happens before committing to a new rate.

But there is no guarantee that rates will fall, and the MPC could increase the Base Rate further at its December meeting.

If you are on a standard variable rate (SVR) mortgage

If you are on your lender’s standard variable rate (SVR), the rate you are automatically put on when your mortgage deal ends, you may want to remortgage soon.

The average interest rate charged on SVR mortgages was already 5.86% before the latest interest rate hike, its highest level for more than a decade, and it is likely to increase by a further 0.75% following today’s Bank Rate increase.

That said, if you are comfortable sitting on a higher rate for a couple of months, you may want to delay remortgaging to see whether rates do come down.

If you are on a tracker mortgage

If you are on a tracker mortgage, which moves up and down in line with changes to the Bank Rate, you may want to stay put.

Although the Bank Rate is widely expected to rise further, interest rates charged on fixed rate mortgages have already factored in some of these anticipated increases.

As a result, the average cost of a two year fixed rate mortgage is currently 6.47%, while interest charged on a five-year deal is only slightly lower at 6.32%.

It is important to remember that if you take out a fixed rate deal, you will be locking into the current high interest rates for two or five years, depending on which product term you opt for.

Ultimately, your decision is likely to come down to whether you have enough slack in your budget to be comfortable on a variable rate mortgage, or whether you want the security offered by a fixed rate one.

 

How can I reduce my mortgage repayments?

If you are worried about the increase in your monthly repayments that you might face when you come to remortgage, there are steps you can take to reduce them.

One way to lower your repayments is to borrow less. While this may be easier said than done, if you have a good level of savings, you may want to think about using some of the money you have set aside to make a lump sum overpayment to reduce the size of your mortgage.

You can also reduce your monthly repayments by increasing your mortgage term.

For example, monthly repayments on a £200,000 mortgage on a fixed rate of 6% would be £1,450 if the mortgage was being repaid over 20 years.

But monthly repayments would fall to £1,210 if the term was increased to 30 years, and to £1,150 if it was being repaid over 35 years.

But it is important to bear in mind that increasing your mortgage term will mean  you pay more in interest over the entire life of your mortgage.

It is also worth remembering that although interest rates have increased, the value of your home is also likely to have gone up since you last remortgaged.

As a result, you will be borrowing a lower proportion of your property’s value than previously, known as the loan-to-value (LTV) ratio.

Lenders offer their most competitive rates to people with lower LTVs, so you may now qualify for a better rate than previously.

 

What should I do if I’m struggling to pay my mortgage?

If you are struggling to keep up with your mortgage repayments, or think you may do so in the near future, it is important to contact your lender as soon as possible.

There are a number of steps lenders can take to help you, including granting you a temporary payment holiday or putting you on to an interest-only mortgage for a short time.

But options become much more limited if you have already missed a payment.

Lenders are obliged by the regulator to work with customers who are struggling with mortgage repayments to find a solution, and they can only repossess a home as a last resort.

 

Contact our property experts today! 

*Zoopla



UK Landlord tax offers specialist guidance following budget 

 
 
In light of the recent Autumn statement of interest being announced, UK Landlord tax a leading property tax accountant, today announced their ability to offer specialist advice.

Currently, landlords whose properties are owned in their names are exempt from capital gains tax on gains up to £12,300. This amount will reduce to £6,000 in April 2023 and to £3,000 in April 2024. For individual landlords, this means they will pay an additional £1,764 in tax for higher rate taxpayers and £1,134 for lower rate taxpayers on capital gains above £6,000 in 2023-24. As of April 2024, higher-rate taxpayers will pay an extra £2,604 in tax and lower-rate taxpayers will pay an extra £1,674 on any capital gains above £3,000.

For landlords who own properties through limited companies, the Dividend Allowance will decrease from £2,000 to £1,000 and to £500 from April 2023. Taking £2,000 in dividends in 2023-24 for example would incur an additional tax of £87.50 for lower rate taxpayers, £337.50 for higher rate taxpayers, and £393.35 for additional rate taxpayers.

Aside from this, the government will reduce the Capital Gains Tax Annual Exemption Amount from £12,300 to £6,000 from April 2023, and to £3,000 from April 2024.

Because of the increased demand that’s put upon taxpayers as a result of the Autumn Statement of Interest, UK Landlord Tax is advising that landlords get in contact with any questions they may have regarding the budget, particularly those pertaining to changes to capital gains tax.

If they end up requiring more detailed tax advice, then they can expect to pay a modest fee for the service when they require it. However, it should be noted that if they wish to partner with UK Landlord Tax on a long-term basis, they can be reimbursed this fee.

 

Contact our property experts today!

 

*Property Wire

 

 



55 Upper Ground, London, SE1

Southbank Tower is a confident, soaring design that is a distinctive landmark on London cultural mile. Residents benefit from high-speed lift access, an indoor swimming pool...
 
£1,195,000

Click here to read 55 Upper Ground, London, SE1.



Belvedere Gardens, Belvedere Road, London SE1

The apartment benefits from floor to ceiling glass panels and stunning river views as well as under-floor heating throughout, comfort cooling, integrated lighting with...
 
£7,583 PCM

Click here to read Belvedere Gardens, Belvedere Road, London SE1.



Southbank Tower, 55 Upper Ground, London, SE1

The apartment features floor to ceiling windows throughout and both the main bathroom and the en-suite are fully fitted to a superb standard. Both double bedrooms are generously...
 
£2,500,000

Click here to read Southbank Tower, 55 Upper Ground, London, SE1.



264 Finchley Road, London, NW3

We are delighted to present this fabulous 3 bedroom, 2 bathroom apartment. This apartment is unfurnished, measures 1257 sq ft and and available now. Comprising a....
 
£4,749 PCM

Click here to read 264 Finchley Road, London, NW3.



264 Finchley Road, London, NW3 

Ideally located on Finchley Road, the development is within close proximity to Hampstead with its popular restaurants, shops and tourist spots. It also benefits from the...
 
 £3,796 PCM

Click here to read 264 Finchley Road, London, NW3 .



4 Canter Way, London, E1

A two bedroom, two bathroom apartment with a balcony is available to rent from 24/01/2023. This apartment comes with access to the on-site gymnasium, swimming pool...
 
£3,900 PCM

Click here to read 4 Canter Way, London, E1.



4 Canter Way, London, E1

The property has been finished to a very high standard and comprises a good size double bedroom with ample storage space, a fully fitted and integrated kitchen with plenty...
 
£3,033 PCM

Click here to read 4 Canter Way, London, E1.



Peel Street, London, W8 

This beautifully presented and substantial 4 bedroom, 3 bathroom house is located perfectly in Kensington between Kensington Gardens/Hyde Park and...
 
£3,395,000

Click here to read Peel Street, London, W8 .



Southbank Tower, 55 Upper Ground, London, SE1

Once you enter the duplex apartment you are led into the kitchen area and fully furnished living room. The kitchen is perfectly finished to an outstanding standard... 
 £16,033 PCM

Click here to read Southbank Tower, 55 Upper Ground, London, SE1.



Oakley House, Battersea Power Station, London, SW11

A stunning two-bedroom, two-bathroom apartment measuring 900 Sq Ft in the brand-new Battersea Power Station is now available. This apartment...
 
 £5,000 PCM

Click here to read Oakley House, Battersea Power Station, London, SW11.



What to expect for the buy-to-let market in2023

 
 

As we approach the end of a turbulent financial year, many landlords in the UK will be weighing up their options going into 2023 and debating whether to remain in the buy-to-let market. Despite an uncertain economic outlook, we can take a look into what’s happening right now and decipher whether or not buy-to-let will continue to be a worthwhile investment going forward.  

What’s happening to buy-to-let mortgages? 

In the fallout from former Chancellor Kwasi Kwarteng’s renowned mini-budget, just like the rest of the market, buy-to-let loans took a hit. 

The number of available products decreased to just 988 different deals in the wake of the announcement, compared with 1,942 before the mini-budget, according to Zoopla.* 

This is due to interest rates increasing significantly since the beginning of the year as a result of the hikes to the Bank of England’s base rate, which is the official cost of borrowing.  

However, the mortgage market is currently in state of flux. Rates have slightly fallen after some market confidence was restored by the appointment of Jeremy Hunt as the new Chancellor, and they may fall further as the cost of government borrowing continues to drop. 

Are any new regulations are being introduced in 2023? 

The government has pledged to introduce the Renters Reform Bill, which includes measures to protect renters from unfair rent increases and evictions. Homes will also have to meet minimum standards and it will become easier for renters to have pets. 

The changes are centred around improving the quality of homes in the private rental sector, with the government estimating that 21% of properties are currently unfit. 

However, the new bill will not lead to significant extra costs (if any) for landlords who already maintain high standards. 

What’s happening with rents? 

Rental rates are currently rising in line with mortgage rates. Data from Zoopla’s latest Rental Market Report found that new rental rates have increased by £115 during the past year to average at £1,051.* 

This sharp spike is due to the disparity between supply and demand in the sector. With too many landlords exiting the market due to uncertainty, there are too few properties available in the private rental sector to catch up with current demand. 

The number of rental homes on the market is currently around half the level seen during the past five years.* Meanwhile, the rate of demand for a rental property is around 142% higher than five years prior, according to Zoopla.* 

We can expect that the trend of demand outstripping supply is likely to continue into 2023, putting further upward pressure on rents. 

Should I purchase a buy-to-let property? 

Those looking to invest should not be deterred by the current conditions. In fact, with rental demand soaring, first-time-buyers postponing their step onto the property ladder for the time being, and rents reaching new highs, you are likely to be in a strong position if you choose to invest now. 

What’s the outlook? 

The buy-to-let market – like the rest of the market – is likely to encounter a few ‘bumps’ in the coming year as a result of hiked up mortgage rates and the cost-of-living squeeze. 

But with demand far outweighing supply for rental homes, and strong rent increases expected going into 2023, property investment remains a safe bet over the long term, in spite of any short-term hurdles. 

 If you’re interested in becoming a landlord, contact our team today for advice.  

Zoopla* 



Central London sales market update

 
 
On a global scale, the world is changing. Global inflation is increasing at an alarming rate, interest rates are rising, and we are all receiving increased bills on a national level. Most economists agree that this is due to the legacy of COVID and the Ukraine conflict, which has caused challenges. However, the current property market and recent interest rate increases are causing people to take a breather and consider their next move or investment.
 
In response to the global financial crisis in 2008, interest rates fell off a cliff, and everyone has grown accustomed to "free money." Because an entire generation has never known anything else, we are currently in an adjustment period. Owning a home and the cost of housing is a national obsession, and the press feeds into this obsession, but for many, it is largely irrelevant because they have no interest in either buying or selling regardless of market conditions.
 
In Central London, the pause for breath has resulted in a decrease in active applicants, which may result in an increase in the time it takes to agree on an offer. If not implemented quickly, this could lead to gazundering in response to the ever-changing global economic outlook. I cannot emphasise enough how important it is for all vendors to prepare a sales pack as soon as possible in order to reduce the time to exchange and the possibility of changing market dynamics being used as a reason to renegotiate price. 
 
If you are selling to buy in the same market, any drops in the value of your home are likely to be mirrored in the value of the property you want to buy. However, at certain price points, this could be advantageous in terms of stamp duty savings. If you are a buy to let investor looking to exit the market, now might be a good time to pause and consider staying in the market for another year or so, as rents are higher than they have ever been.
 
The market traditionally slows in the run-up to Christmas, and that slowing is already underway in response to changing interest rates. If you want to invest, now is the time! Finding the right property can take time, and in a slower-moving market, you are far more likely to find a vendor willing to consider an offer or to be more flexible in terms of selling time scales.
 
It is critical to remember that everything is cyclical. Demand for housing is higher than it has ever been, so once the market adjusts to a more historically "normal" interest rate, things could quickly revert to the "new" normal. Central London property remains resilient, oversubscribed, and represents a very safe investment for many who see it as a long-term investment.
 



Demand on the rise for energy-efficient homes

 
 

Santander’s Buying into the Green Homes Revolution Report has revealed that nine in ten estate agents have acknowledged that demand is rising among homebuyers for properties with higher energy efficiency ratings. * 

The research unveiled that estate agents are poised to play an important role in increasing awareness among homebuyers regarding energy efficiency, as demand for green homes continues to rise. 

Green homes growing in popularity 

Santander’s report asked 2,000 homeowners and 175 estate agents for their perspectives on retrofitting and found that there is a fast-growing interest among homebuyers for energy efficient homes. 85% of estate agents also reported increased demand for greener properties in the past twelve months. * 

54% of the estate agents surveyed pinned the growth in demand down to the rising cost of energy bills, alongside an increased number of green mortgage products from lenders (45%) and a greater awareness of the need to tackle climate change from an individualistic approach (51%). * 

Growing awareness in the environmental crisis and the rising cost of energy is steering buyers towards competing for homes with a smaller carbon footprint, which is why buyers on average are spending 15.5% more for a property with a high EPC (Energy Performance Certificate) rating. * 

Estate agents stepping in 

While engagement for green homes is growing, there appears to be a knowledge gap amid homeowners, with 60% not knowing the EPC rating of the property they live in, according to Santander’s survey. * 

The research indicates that estate agents are taking a more proactive approach in helping bridge this gap for sellers, with 66% in the past year undertaking training to better improve their knowledge, and a further 29% planning to do so in the future. In addition to this, 61% have updated their marketing materials over the past year to focus more prominently on energy efficiency information. * 

Homes with poor energy efficiency 

Not only have agents reported a rise in demand for green homes, but they also acknowledged a decrease in demand for homes with poor EPC ratings. Over the past year, 70% of agents reported seeing homeowners struggle to sell their properties due to poor energy efficiency. Additionally, the time it takes to sell is on average 3 months longer compared to a property with a good EPC rating, according to Santander. * 

Graham Sellar, Head of Business Development – Mortgages at Santander commented: “The feedback from estate agents is striking and reveals that in an environment of the rising cost of living pressures, there has been a real shift in preference among buyers for homes with reduced energy costs. 

“Estate agents will be a key part of raising understanding and awareness among buyers and sellers on the benefits of having an energy-efficient home, so it is encouraging so many are being proactive in improving their understanding. With the findings showing a clear ‘green home premium,’ the benefits are clear, and any changes made will not only reduce buyers’ bills but make the property more attractive to buyers in the future.” * 

Santander – Buying into the Green Homes Revolution Report* 

 

Are you on the hunt for an energy-efficient home? Browse our current selection of properties today. 



A landlord’s essential winter checklist 

 
 

Amidst all the hustle and bustle of Christmas preparation, the holiday season is really about taking a much-needed break from everyday business to spend time with loved ones. But before enjoying some time off, landlords must make sure everything in their rental property is running as it should. Other than avoiding hefty repair costs, investing some time into your property before Christmas means you won’t have to deal with any last-minute calls when you’re in front of the fireplace trying to enjoy your mince pie.  

Here are all the essentials for landlords to check off the list before wrapping things up for Christmas and the New Year.   

Water pipes  

Frozen water pipes are a common problem over the winter months, and a build-up of leaves or debris in your gutters can prevent rainwater or snow from draining away. Internal and external water pipes should be checked and properly lagged – including any pipes in the loft. Lagging pipework is an easy DIY project which will immediately make a difference, especially in the winter. Getting this step out of the way will ensure that the heat in the hot water is not lost before it gets to where it’s needed – reducing the risk of frozen or burst pipes.  

The boiler  

The boiler has some busy months ahead, and it’s going to be working hard over Christmas when your tenants are spending more time at home. Make sure your property’s boiler has been serviced and consider putting a service plan in place. If it’s a gas boiler, ensure the gas safety certificate is up to date.  

Ventilation  

Although having a warm property is ideal for both you and your tenants, condensation can quickly lead to dampness when the weather outside is colder. Make sure your property is well-ventilated and focus especially on airflow in the kitchen and bathrooms. You may also want to advise your tenants to keep an eye on condensation and encourage them to crack open a window or switch on the extractor fan wherever possible.  

Alarms  

Check that all smoke and carbon monoxide detectors are functioning in accordance with current government legislation. While you’re paying a visit, it might be a good idea to give your tenants a quick brush-up on fire safety, as Christmas decorating often calls for more electronics and candles than usual.  

External  

While you’re paying a visit to the property, take some time to check over any external spaces. Make sure all security measures are working, check for peeling paint as this can indicate moisture ingress, and look out for any cracks in the driveway or paving that hard frost could exacerbate.   

Guttering  

In the wake of Autumn, a build-up of leaves and debris is something to look out for as this can stop rainwater or snow from draining properly. Avoid potential leaks and cracked drain pipes by clearing out gutters if necessary.   

Kick back and relax  

Lastly, if you won’t be home over the holiday season, let your tenants know who to contact while you’re away in case of an emergency.  

Once you have made sure your tenant’s Christmas won’t be compromised by a faulty property, you can finally put your feet up and rest assured that your tenants will be comfortable this season – and that you won’t be facing any eyewatering repair costs come New Year’s. 

 

Find out more about the services we offer today.



Southbank Tower, 55 Upper Ground, London, SE1

The fabulous apartment encompasses a fully fitted impressive kitchen, 1364 sq ft, with an open plan, reception room designed to entertain with northerly river views of the City...
 
£2,350,000

Click here to read Southbank Tower, 55 Upper Ground, London, SE1.



Southbank Tower, 55 Upper Ground, London, SE1

A luxurious 2 bedroom, 2 bathroom apartment is available for sale. Located in the iconic Southbank Tower,  this  fabulous  apartment encompasses a fully fitted impressive kitchen...
 
£1,400,000

Click here to read Southbank Tower, 55 Upper Ground, London, SE1.



7 Baltimore Wharf, London, E14

This bright and spacious sub penthouse provides open plan living and has amazing views over the dock. This penthouse also offers panoramic views and has a very...
 
 £1,365,000

Click here to read 7 Baltimore Wharf, London, E14.



Ability Place, Millharbour, London, E14

Alongside the outstanding large private terrace, the apartment features floor-to-ceiling windows which illuminate the entire apartment with natural light, whilst also fully...
 
£900,000

Click here to read Ability Place, Millharbour, London, E14.



Southbank Tower, 55 Upper Ground, London, SE1

A spectacular luxury 1 bedroom, 1 bathroom apartment located within this superb development with south-facing views. It is a confident, soaring design that is a distinctive...
 
 £899,000

Click here to read Southbank Tower, 55 Upper Ground, London, SE1.



Trevor Place, Knightsbridge, London, SW7

he charming terraced house at Trevor Place is well-proportioned in the heart of Knightsbridge location. Here is close to all the amenities of the Brompton Road including, shopping...
 
 £19,500 PCM

Click here to read Trevor Place, Knightsbridge, London, SW7.



Viridium Apartment, Finchley Road, London, NW3 

We are delighted to present this fabulous 3 bedroom, 2 bathroom apartment. This apartment is unfurnished, measures 1257 sq ft and and available now. Comprising...
 
£4,749 PCM

Click here to read Viridium Apartment, Finchley Road, London, NW3 .




Coldwell Banker
Ground Floor Office, 9 Belvedere Road, London, SE1 8YL
southbank@coldwellbanker.co.uk